Sindhu Development Bank Reports Loss for the Second Quarter of the Current Fiscal Year

Sindhu Development Bank Limited (SINDU) has published its unaudited financial statement for the second quarter of the current fiscal year. According to the report, the bank has incurred a loss during this period.

For the first six months of the current fiscal year, the bank reported a loss of NPR 1.54 crore, compared to a profit of NPR 4.87 crore in the same period of the previous fiscal year.

Despite a moderate increase in net interest income, the bank faced a loss due to higher impairment charges. During the review period, the bank’s net interest income increased from NPR 5.66 crore to NPR 5.88 crore. Additionally, its fee and commission income grew from NPR 55 lakh to NPR 86 lakh, and total operating income increased from NPR 6.48 crore to NPR 6.99 crore. In the second quarter of the previous fiscal year, the bank had reported an impairment charge reversal of NPR 8.62 crore, leading to a profit, but this year, the impairment charge amounted to NPR 17.88 lakh, contributing to the loss.

As of mid-January, the bank's earnings per share (EPS) stood at a negative NPR 5.50, with a net worth per share of NPR 94.19. The distributable profit for the period was also negative, amounting to NPR 22.85 crore.

The bank has a paid-up capital of NPR 55.74 crore and a negative reserve fund of NPR 3.23 crore. By the end of the second quarter, the bank collected deposits worth NPR 5.66 billion and disbursed loans totaling NPR 3.25 billion.